Modi Cabinet Decisions / Cabinet approves plan to give incentives on UPI- Government takes a big decision

Modi Cabinet Decisions: The Union Cabinet led by Prime Minister Narendra Modi has approved several important proposals, which will be helpful in accelerating the economic, agricultural and infrastructure development of the country.

Incentive scheme of Rs 1500 crore to promote BHIM-UPI transactions

The Cabinet has approved an incentive scheme of Rs 1500 crore to encourage low value BHIM-UPI transactions (P2M). The scheme will be in force from April 1, 2024 to March 31, 2025. Under this scheme, an incentive of 0.15% per transaction will be given on transactions up to Rs 2,000. The initiative aims to promote digital payments and provide financial assistance to small merchants.

Rs 3400 crore approved for National Gokul Mission

The Cabinet has approved the expansion of the National Gokul Mission at a cost of Rs 3400 crore for the financial years 2024-25 and 2025-26. The scheme will promote milk production through artificial insemination and in vitro fertilization (IVF) techniques. This initiative will provide economic benefits to the cattle farmers and increase milk production.

Small merchants and digital payments will benefit

This incentive scheme will especially benefit small merchants, as they will receive incentives at the rate of 0.15% on UPI transactions up to Rs 2,000. The government aims to increase the reach of digital payments and make the payment system more accessible for merchants.

In addition, the government has reduced the Merchant Discount Rate (MDR) to zero, making digital transactions cost-free across all categories. The acquiring banks will pay 80% of the claims on a quarterly basis, while the remaining 20% ​​amount will be released based on technical performance.

New National Highway at a cost of Rs 4500 crore

The Union Cabinet has approved the construction of a 29.21 km long six-lane national highway to connect JNPA port (Pagote) to Chowk in Maharashtra. The project will be developed at a cost of Rs 4,500 crore under the 'Build, Operate, Transfer' (BOT) model.

Namrup IV Fertilizer Plant for Urea Production

The Cabinet also approved setting up of a new brownfield ammonia-urea complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam. The project will increase the availability of urea in the north-eastern region, benefiting Assam, West Bengal and other northeastern states.

Government's initiatives to strengthen the digital economy

The government has made massive investments to encourage digital transactions in the last three financial years:

• FY 2021-22: ₹1,389 crore
• FY 2022-23: ₹2,210 crore
• FY 2023-24: ₹3,631 crore

Under this new incentive scheme, the government aims to achieve digital transactions worth Rs 20,000 crore in 2024-25. This will also promote the reach of digital payments in small towns and rural areas.

Conclusion

These decisions taken by the Cabinet are important steps towards the economic development of the country, strengthening the digital payment system, improving agriculture and infrastructure. These schemes will provide direct benefits to small traders, farmers and common citizens, making India's economy digital and inclusive.